We expect Deckers Outdoor Corporation (DECK), the designer and marketer of niche footwear and accessories, to beat expectations when it reports first-quarter fiscal 2013 results on Apr 25, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Deckers is likely to beat earnings because it has the right combination of two key components.
Positive Zacks ESP: Deckers currently has an Earnings ESP (Read:Zacks Earnings ESP: A Better Method) of +50.00%. This is because the Most Accurate Estimate stands at -5 cents, while the Zacks Consensus Estimate is pegged at -10 cents.
Zacks Rank #3 (Hold): Note that stocks with a Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and #5) should never be considered going into an earnings announcement.
The combination of Deckers’ Zacks Rank #3 (Hold) and +50.00% ESP makes us very confident regarding a positive earnings beat on Apr 25th.
What is Driving the Better than Expected Earnings?
Deckers is trying every means to reposition itself to keep afloat in a difficult consumer environment, by focusing on new product introductions, store augmentation and new store openings along with geographic expansion. The positive trend is seen in the trailing four-quarter average surprise of 3.3%.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat:
Hertz Global Holdings, Inc. (HTZ), Earnings ESP of +5.56% and a Zacks Rank #1 (Strong Buy).
Kraft Foods Group, Inc. (KRFT), Earnings ESP of +3.13% and a Zacks Rank #2 (Buy).
Amazon.com Inc. (AMZN), Earnings ESP of +100.00% and a Zacks Rank #3 (Hold).Read the Full Research Report on AMZN
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